AMD reports $611 million LOSS

Holy Moly! I wonder if this also has to do with the recent acquisition of ATi..

Declining microprocessor sales as well as dropping average selling prices for its microprocessors have pushed AMD deeper into the red. The company reported a net loss of $611 million on revenues of $1.233 billion, which is more than 20% below the guidance the company expected at the end of Q4 2006.

The loss includes charges related to the ATI acquisition in the amount of $113 million, but is mainly a result of the increasing competition with Intel in the microprocessor market. The company said that its Q1 margins were 31%, down from 40% in Q4 2006 and down from 59% in Q1 2006. "The decrease from the prior quarter was largely due to significantly lower microprocessor unit shipments, lower microprocessor average selling prices (ASPs), and the inclusion of the former ATI operations, which generally have lower-margin products, for the entire quarter, AMD said.

AMD had revenues of $1.332 billion and a profit of $259 million in Q1 of 2006; in Q4 2006, the company reported revenues of $1.773 billion and an operating loss of $529 million.

News source: Full Article @ Toms Hardware
Link: Neowin Forum Discussion | Cheers Al

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My bet is, Intel might PAY AMD to stay in business so they form a "competitive" CPU market. If AMD goes under, Intel will stop R&D, and the Core 2 Duo will be the last processor ever.

"My bet is, Intel might PAY AMD to stay in business so they form a "competitive" CPU market. If AMD goes under, Intel will stop R&D, and the Core 2 Duo will be the last processor ever. " ....


YES YES..!!! Intel's gonna give away their money so another company can force them to sell their products cheaper!! Oh Yea! Intel will be the last CPU company, a full monopoly, and no one else will make processors... IBM won't compete, Motorola will just say screw it, and all the other CPU manufacturers will just close their doors and bow to the awesome might of intel ~> CPU Manufacturers


Think ..... before you type.

AMD Just doesn't innovate quickly enough. Intel now released the E6320 and E6420, both with double cache memory, both are noticeable faster, but they kept the price exactly the same... Intel and nVidia just keep up with everything while AMD just waits and waits...

More than likely, the "big shots" working at AMD make a big profit, and thats where the "loss" is coming from... paying their salaries. Like most businesses who claim they aren't making enough profit, yet the CEO makes millions.

I still prefer AMD over Intel. If its wasn't for AMD, your Intel cpu's would be costing 4x or more than what you paid.

Buying ATI doesn't seem like such a great idea now does it. AMD struck it big by selling affordable processors that outperformed the competition. Did they stick with that plan though? Nope. Let's get greedy and buy a graphics card company! Brilliant! It's bad enough they're running their company into the ground, did they have to take ATI with them? I realize that purchase alone isn't the reason they are losing so much, but it was basically the Catalyst (pardon the pun). They should have been putting all their money and resources into competing with the Core 2 line, not going on shopping sprees.

That's what happens when you falter in their business. It happened to Intel not long ago and now it's happening to AMD.

I don't know why many AMD user like to think that AMD was once dominating Intel. I have not seen any quality AMD processor back then and till now. I know time will prevail and it did. True champions will always be true champions. As a long time Neowin member, I've also complain about ATi driver quality and that it seems to go along with AMD user. Again, this prevail.

Holy Moly! I wonder if this also has to do with the recent acquisition of ATi..

The answer for that is in the 2nd paragraph of the news post hehe

I don't understand is why Intel continues to push AMD this hard. They've made their point: Intel is King! Now it should back off and let AMD catch up a little.

While it's great having all these rapid advancements in processor technology, If AMD goes under, Intel is going to have the same problems with a perceived processor monopoly as Microsoft has with its perceived OS monopoly. Multi-billion-dollar EC fines won't be far behind, and processor prices will skyrocket.

And of course we all know how Intel likes to poke along when it thinks it has no real competition; doling out new technology to the masses at whatever speed it sees fit. Without AMD, we'd probably all still be using 32-bit single-core processors.

However, there is still such a thing as going too fast.

Intel, Slow Down! We'd all rather see you spending your money on R&D instead of on EC speeding tickets!

How the hell do you gross more than 1.7 billion dollars and still have a period net gain of -600 million? What in the world are they doing with their money?

IS there a need to capitalize the word LOSS? I wonder if the author would capitalize the word PROFIT if that was the case...

kivine said,
IS there a need to capitalize the word LOSS? I wonder if the author would capitalize the word PROFIT if that was the case...

It's a surprise, and not what people would expect to read.

.. .and just before, amd taunted intel about gluing their cpus together... at least intel's idea worked... amd's running out of ideas or something?

They need something huge and fast . Intel is adopting the memory thing on chip. So far AMD has not a single shred of tech now that intel wont have.

Heck Intel is even thinking of doing the GPU on the processor also.

AMD needs something huge . Just a great gpu wont cut it because you will have competion from nvidia and intel themselves.

Poor AMD. They've done nothing wrong. I've always used their processors and been more than happy with them. I can think of companies more deserving of this fate.

That said, Intel have lowered their prices over the last few years, not to mention Apple's move to Intel, and my respect for NVIDIA is growing. So this isn't that that surprising. It's a shame really.

They've done all sorts of things wrong.

AMD's cash supply is dwindling. They have stated that they're going to reduce capital expenditures to help improve cash flow but that means they can't renovate enough of their fabs to 60 and 45nm. Without die shrinks AMD cannot compete with Intel in the desktop CPU segment.

Numerous websites have outlined the bad business decisions AMD management has made.

Hector Ruiz got them into this position. He ought to be ousted.

I can think of things they've done wrong.

They killed of 939. Why? They basically put every 939 owner who wanted a cheap CPU upgrade in the position where they now have to buy a new motherboard, memory, etc.

Lets say for example I built a PC and picked up a 3200+ with the intention to upgrade some time in the near future. Some time passes, I've saved a few bucks and I want to pick up an X2 4600. I can't. I need to buy a new motherboard and ram because AMD killed 939 and released the exact same proccessors (performance-wise) on AM2. Why would I buy AMD? Why wouldn't I go to Intel, who's chips are currently performing much better? It made sense to stay with AMD when all I needed to upgrade was my CPU and the superior Intels required me to update my cpu, mobo and ram. But now, for no logical reason AMD, is telling me I need to update my mobo and ram with them as well. So again, why would I stay with AMD? The intels perform better, and intel hasn't totally ****ed me off recently.

Well i know what the problems are :P

  • Intel Core2 Duo
  • nVidia switches to Intel
  • nVidia releases DX10-card series in cheapo-midrange and highend before we even saw a demo of ATi's
  • ...

o.0 holy F**k $611 million they need to get there new line of GPU's and CPU's out now and i mean now!! that is a really hard blow to there shares, im surprised that they havn't rushed everything out now im expecting it the next week or so

No, they won't. Intel is already showing Penryn benchmarks. If AMD had anything remotely impressive to show off they would have done it already.

BTW, can you list any of AMD's new "bells and whistles?"

raskren said,
No, they won't. Intel is already showing Penryn benchmarks. If AMD had anything remotely impressive to show off they would have done it already.

BTW, can you list any of AMD's new "bells and whistles?"


Here is a Bell.

AMD is well on its way to releasing the chip it has dubbed the "Core 2 Duo killer", probably Q3-4 2007, and now has decided to reveal exactly how its K10 "Barcelona" chip plans to make that kill.

The first point AMD stress is that moving to the new K10 using Socket F will only need update the BIOS while both desktop and notebook Barcelona versions will be released.

Technically, Barcelona will be able to deliver 4 Floating Points per clock cycle and will feature an increased buffer while all four cores will carry 512 KB of L1 and an L2 cache and all cores will share the 2 MBs of the L3 cache. According to AMD's European technical director, Guiseppe Amato, the main advantage of the new microprocessor compared to Intel's design is AMD's memory connect design.

This information comes from AMD as Intel prepares the ground for its Developer Forum in Beijing next week. If AMD stick to their usual strategy expect more Barcelona information to be unveiled as the Intel event approaches.

http://server1.megagames.com/news/html/har...nadetails.shtml

j0j081 said,
AMD is well on its way to releasing the chip it has dubbed the "Core 2 Duo killer", probably Q3-4 2007

Note the irony there?

And I bet they will blame it on Intel because they haven't came out with a consumer chip to top the Core 2 Duo / Quad yet... then scream monopoly... AMD needs to get their act together... they wanted competition, they got it when Intel bind sided them with the Core line now they seem to be getting behind in development and financials